Our experience of assisting foreign companies in their joint ventures in India shows that one of the biggest hurdles in a joint venture is the wrong selection of a partner. Many companies do not understand how Indian companies are run and often accept facts and figures at face value. Due to our international experience we do get a first feel of the cultural dynamics of a new relationship.

We believe that 90% of the work related to the formation of the joint venture must be spent away from the negotiating table and that successful joint ventures are those that result in a ‘win-win’ situation for the parties involved. We believe that a holistic perspective in designing, negotiating and documenting a joint venture is essential. Therefore all aspects such as business, commercial, international tax, transfer pricing and legal aspects should be considered in designing the joint venture.

We provide comprehensive services in terms of partner selection, valuation, negotiations, etc. In essence we play a role in the entire design of the joint venture so that companies avoid mistakes that others have made.

Our services encompass:

• Due diligence of the joint venture partner and management
• Preparation/ vetting of the business plan of the joint venture company (a kind of reality check if required)
• Design & financial structuring of the joint venture considering Indian and international tax, commercial issues. For example based on the respective roles and contributions of the partners – the rewards for those contributions may take various forms such as technical service fees, management fees, royalties, etc.
• Drafting a joint venture agreement and negotiations with the prospective joint venture partner considering various legal, commercial, tax and exchange control issues
• Negotiations and documentation of the technology license agreement and other related agreements
• Obtaining foreign investment approval through either the Reserve Bank of India or the Foreign Investment Board
• Monitoring the establishment of the joint venture manufacturing facilities – for example if a Greenfield manufacturing facility is being established and the Indian partner is sourcing the land, equipment, etc. we could do a background check on location, pricing, etc.
• Once the joint venture is set up we can render various services such as: